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I have called the NY dept. of taxation and finance and after 30 min of talking with the lady it was very obvious she had no idea there was anything other than sales tax included in a gallon of gas or diesil. I was refered to this website...

Correct. I just noticed where your located and are one step ahead of you at the moment due to Doghead asking about state taxes for NY also. More later...

Are you asking that if you run 100% WMO or WVO you don't have to pay tax due to the wording involing blending?? To start with unless your using more than 400 gallons a quarter your exempt from federal tax only. This document has not bearing whatsoever on any state's right to tax fuel. So if...

I'll throw you a fish..... The IRS exempts you from federal taxes as long as your useing less than 400 gallons a quarter. I'll attach the laws so you have them. Top of page 4(I think) under Exclusions, Minor blending. You now just have to findout what your state requires to legally run free...